COMPLETION OF PROPOSED PENALTY WORKSHEET

POLICY: It is the policy of the Division of Occupational Safety
and Health to assess a civil penalty for each serious, repeat,
willful, failure-to-abate violation and for the following
regulatory violations: failure to report carcinogen use; failure
of a physician to report a pesticide-related illness; failure to
conform to asbestos-related registration requirements, and
failure to obtain a construction activity permit. Penalties for
general and regulatory violations, which are not listed above,
will also be proposed unless a Notice in lieu of a citation is
issued by the Division in accordance with Labor Code §6317 and
P&P C-4.
PROCEDURES:

A. RESPONSIBILITIES

Compliance Personnel Responsibilities

All violations found during a workplace inspection
shall be entered on the Cal/OSHA Form 10 (Proposed
Penalty Worksheet) and all civil penalties
proposed for those violations shall be calculated
and entered on the Cal/OSHA Form 10 by the
compliance personnel who conducted the inspection.
The Cal/OSHA Form 10 does not have to be completed
for an inspection which resulted in violations for
which no civil penalties are proposed.

The Cal/OSHA Form 10 shall be used as a worksheet to calculate the
proposed penalty. For ease of arithmetic calculation, refer to Attachments
A and B which set forth matrixes for every possible gravity-based penalty
and penalty adjustment factors for general, regulatory and serious violations.

District Manager Responsibilities

Office-Issued Citations
The District Manager shall review, prior to
issuance of proposed civil penalties, the penalty
calculations contained on the Cal/OSHA Form 10 to
ensure that the violation for which a civil
penalty is proposed is properly classified and
that the civil penalty is calculated in accordance
with the procedures found in P&P C-10 and is
arithmetically correct.

Field-Issued Citations
The District Manager shall review the penalty
calculations contained on the Cal/OSHA Form 10 as
soon as possible after field issuance to ensure
that the violation for which a civil penalty was
proposed was properly classified and that the
civil penalty was calculated in accordance with
the procedures found in P&P C-10 and is
arithmetically correct.

Amended Citations
When a classification or calculation error is
noted on an office or field-issued citation, the
District Manager shall provide the employer with
an amended citation correcting the error. The
amended citation shall be issued prior to the
original citation becoming a final order of the
Occupational Safety and Health Appeals Board.
However, once an employer files an appeal of the
citation and the appeal has been docketed, civil
penalties and citations can only be amended by
motion to the Appeals Board.

NOTE: The date the employer's appeal is
docketed can be determined by telephoning the
Appeals Board's Docketing Clerk.

Regional Manager Responsibilities
The Regional Manager shall monitor civil penalty
assessments throughout the Region to ensure consistent
application of the procedures found in P&P C-10.

B. SPECIFIC VIOLATIONS

Regulatory Violation

There are seven types of regulatory violations for which the following
gravity-based penalties are required and shall be entered in Item 12 on
the Cal/OSHA Form 10:

Failure of the employer to report a serious injury or illness, or death
($5000);

Any other non-carcinogen or non-pesticide-related illness not categorized
above ($500), e.g, failure to post or failure to report injury or
illness illness by a responding governmental agency.

NOTE: All of the above types of regulatory violations shall be adjusted
for Good Faith, Size and History, except for the failure of a physician
to report a pesticide-related illness and failure of the employer to report a serious injury or illness, or death.

General Violation

For each general violation, a civil penalty shall be proposed based
on the severity, extent and likelihood of the violation. See P&P C-1B
for the criteria to be used in determining the severity, extent and likelihood
of a violation.

Civil penalties for general violations are as follows:

Severity

Low $1000

Medium $1500

High $2000

Extent -- Modification Factor

Low - 25% of severity

Medium 0

High + 25% of severity

Likelihood -- Modification factor

Low - 25% of severity

Medium 0

High + 25% of severity

Penalties for general violations may be waived if the employer at the
time of the Division's inspection was making a good faith effort to abate
the alleged violation pursuant to written recommendations of the Cal/OSHA
Consultation Service (8 CCR Sec. 336(d)(4)(A)). When the penalty for an
Item is waived, enter "Penalty Waived-Consultation" on Item 9 through
11.

NOTE: Examples of acceptable evidence of good faith effort
include a timely attempt to abate the violation, copies of purchase
orders for equipment to correct violative conditions and written instructions
to modify, revise or direct procedures or processes to correct violative
conditions.

Serious Violation

For each serious violation, a civil penalty shall be proposed based
on the severity, extent and likelihood of the violation. See P&P C-1B
(Documentation Worksheet) for the criteria to be used in determining the
severity, extent and likelihood of a violation. There are two types of
serious violations for purposes of proposing civil penalties:

Serious (Non-carcinogen)

Serious (Carcinogen)

Civil penalties for serious violations based on severity, extent and
likelihood are as follows:

Severity

Serious (Non-carcinogen) -- -- $18,000 (Gravity-Based Penalty)

NOTE: In determining the gravity-based penalty for a serious
(non-carcinogen) violation that the Division determines caused
a death or a serious injury, illness or exposure, the adjustments
to the severity-based penalty for extent and likelihood shall
only be rated as moderate or high, and in no case shall the
gravity-based penalty be less than $18,000. Further reductions
to the gravity-based penalty shall not be made for any reason
other than the size of the employer being cited.

Serious (Carcinogen) -- $2000

NOTE: The total civil penalty for serious carcinogen violations
is $2000 and shall not be modified or adjusted for any reason.

Extent -- Modification Factor

Low - 25% of severity

Medium 0

High + 25% of severity

Likelihood -- Modification factor

Low - 25% of severity

Medium 0

High + 25% of severity

Repeat Violation

Minimum and Maximum Penalties

The maximum penalty for any repeat violation shall not exceed $70,000

NOTE: Any employer who is cited for a repeat violation
of any occupational safety or health standard, order or special
order, or Section 25910 of the Health and Safety Code, shall not
receive any adjustment of the penalty for History or Good Faith.

If a regulatory, general or serious violation is a repeat violation,
the gravity-based penalty shall be multiplied by the following factors:

NOTE: Penalties for initial failure to report carcinogen violations
are subject to adjustment for Good Faith, Size and History. Penalties
for repeat failure to report carcinogen violations are not subject
to adjustment for Good Faith, Size and History. When calculating
the penalty for repeat regulatory violations concerning a carcinogen
reporting requirement, transfer the penalty amount in Item 13 to
Item 18 on the Cal/OSHA Form 10.

Repeat Serious Violations Respecting the Use of A Carcinogen
If the repeat serious violation concerns the use of a carcinogen,
the penalty shall be proposed as follows:

Repeat

Amount

1st

$10,000

2nd

$20,000

3rd or more

$40,000

NOTE: Penalties for repeat serious violations for use of a carcinogen
are not subject to adjustment Good Faith, Size and History.

Violation Causing Death or Serious Injury, Illness or Exposure
If the Division determines that a repeat violation caused death or serious
injury, illness or exposure, the gravity-based penalty shall not be reduced
for any reason other than the size of the employer being cited.

Willful Violation

General Issues
If a regulatory, general or serious violation is determined to be willful,
the proposed penalty is multiplied by 5.

Minimum and Maximum Penalty

The minimum penalty for any willful violation shall not be less
than $5,000.

The maximum penalty for any willful violation shall not exceed
$70,000.

Violation Causing Death or Serious Injury, Illness or Exposure If the
Division determines that a willful violation caused death or serious injury,
illness or exposure, the gravity-based penalty shall not be reduced for
any reason other than the size of the employer being cited.

Abatement Credit

Regulatory

An abatement credit shall not be granted for any regulatory violation.

General and Serious

The gravity-based penalty for general and serious violations is reduced
by 50% on the presumption that the employer will correct the violations
by the abatement date. The resultant penalty is termed a "proposed penalty."

An abatement credit shall not be granted for the following types of
violations:

All civil penalty calculations for failure to abate a previously
cited violation are to be performed on the original Cal/OSHA Form
10.

When civil penalties are issued for failure- to-abate, the District
Manager shall send a cover letter to the employer with the IMIS Form
2B (Notification of Failure to Abate Alleged Violations) specifying
the following:

The items previously cited which are still in violation; and

The requirement that the employer immediately abate the previously
cited items which are still in violation.

NOTE: The failure to abate information on the Cal/OSHA Form 10
shall be used to complete the IMIS Form 2B.

The daily penalty for failure to abate a regulatory or general
violation may be further reduced up to 90% for the first 120 days
that the violation continues to exist and up to 50% thereafter where
the violation does not bear a direct relationship to employee health
and safety.

EXCEPTION: If the severity of the violation is high and
exposure to employees is continuous, or the employer has exhibited
a high degree of negligence in failing to correct the violation,
the penalty shall not be further reduced.

The daily penalty for failure to abate a serious violation may
be reduced up to 50% where extent and likelihood are calculated as
low and the Good Faith and History are calculated as Good, except
where the gravity of the violation is high and exposure to employees
is continuous, or the employer has exhibited a high degree of negligence
in failing to correct the violation.

Failure-to-Abate Penalties

Maximum Daily Penalty

Penalties for a failure-to-abate violation shall not exceed $15,000
per day [8 CCR Sec. 336(f)].

Regulatory Failure To Abate

To calculate the failure-to-abate penalty for regulatory violations,
start with the gravity-based penalty in Item 12 of the Cal/OSHA
Form 10 and then complete Items 19 through 26. See Section F. Forms
Completion.

General Failure to Abate

To calculate a failure-to-abate general violation, see Section
F. (Forms Completion), Items 19 through 26.

Serious Failure to Abate

For any employer who submits a signed statement affirming compliance
with the abatement terms for a serious violation and has been
found upon reinspection not to have abated the violation, the
additional civil penalty for failure to abate shall not be adjusted
for Good Faith of the employer or History of previous violations.

If the Division determines that death or serious injury, illness
or exposure was caused by failure to abate a serious violation
within the time permitted for its abatement, the penalty shall
not be reduced for any reason other than the Size of the business
of the employer being charged.

C. SPECIAL PENALTY PROVISIONS

Violation of a Crane Standard, Order, or Special Order
Causing Death or Serious Injury

If a violation of a crane standard, order, or
special order is classified as repeat serious or
repeat willful, and the Division has determined
that the violation caused death or serious injury
as defined pursuant to Labor Code Sec. 6302, the
penalty shall be $140,000. This penalty is not
subject to adjustment.

If the employer fails to abate a serious violation of a crane standard,
order, or special order, and the Division has determined that the failure
to abate caused death or serious injury as defined pursuant to Labor Code
Sec. 6302, the penalty shall be $14,000 for each calendar day. This
penalty is not subject to adjustment.

Serious Tower Crane Violations

For any employer who violates any tower crane standard,
order or special order, and such violation is
determined to be a serious violation, the Division
shall propose a civil penalty of $2,000. This penalty
is not subject to adjustment for Good Faith, Size and
History. If Items 13 through 18 are applicable, follow
the instructions for regulatory violations (Non-
carcinogen/pesticide-related illness). If Items 19
through 26A are applicable, follow the instructions for
serious (Carcinogen) violations.

Field Sanitation Violations

If a violation of 8 CCR Sec. 3457(c)(1)(A), (c)(1)(B), (c)(1)(C), (c)(2)(A),
(c)(2)(B), (c)(3)(B), (c)(3)(C), (c)(3)(G)(1), (c)(3)(G)(2) and (c)(3)(G)(3)
is classified as general, the penalty shall be $750. This penalty is
not subject to adjustment. If Items 13 through 26A are applicable, follow
the procedures for repeat, willful or failure to abate general violations.
If the foregoing violations are classified as serious, follow the procedure
for Serious (Noncarcinogen). However, the minimum civil penalty for any
serious violation shall be no less than $750.

Discretionary Penalty Reduction for Multiple Violations
Pertaining to a Single Hazard.

Under certain circumstances 8 CCR Sec. 336(k) permits
the Division to reduce penalties for multiple
violations based on a single hazard. Generally,
the purpose of this section is to permit reduction
of penalties based on the same hazard on a case-
by-case basis, where the amount of the cumulative
total would be unfair given the magnitude of the
violations, or where a lower amount would be
sufficient to further compliance with the
Occupational Safety and Health Act.

This penalty reduction does not apply to the
following:

Violations which have resulted in death or
serious injury, or illness.

Serious carcinogen violations.

All other violations which have resulted in
serious exposure.

Willful violations.

Any employer who does not have an operative
Injury and Illness Prevention Program at the
time of the inspection.

NOTE: A reduction can be applied to repeat or
failure-to-abate penalties which are not
disqualified by Items (1) through (5), but only
under extraordinary circumstances and only with
the written approval of the Deputy Chief for Field
Operations.

To apply the discretionary reduction, determine
which violations are based on a single hazard.
The violation bearing the highest penalty shall
not be reduced. Penalties for the remaining
violations based on the same hazard may be reduced
as follows:

For serious violations not involving a
serious exposure, the penalty may be reduced
up to 90%.

For regulatory and general violations, the
civil penalty may be reduced up to 100%,
except where a minimum civil penalty is
mandated by law.

For each penalty to be reduced, compute and enter
the unreduced penalty through Item 17. Enter the
reduced penalty in Item 18 and place an asterisk
next to the amount entered. Reference the
asterisk in the upper left hand corner of the form
with the following note:

*Discretionary penalty reduction, as
permitted in Sec. 336(k) "multiple violations
pertaining to a single hazard."

Injury and Illness Prevention (IIP) Program Violations

Penalty Exemption for New Employer in the State

No civil penalty shall be proposed for any new
employer in the State for a period of one year
after the date the new employer establishes a
business in the State for a regulatory or general
violation of 8 CCR Sec. 3203 if the employer has made
a good faith effort to comply with the
requirements found in
Sec. 3203.

Model IIP Program for Non-High Hazard Employment

No civil penalty shall be proposed for an employer
who adopts, posts and implements in good faith,
the Model Injury and Illness Prevention Program
for Non-High Hazard Employment prepared by the
Division pursuant to Labor Code 6401.7(j)(1) for a
first violation of 8 CCR Sec. 3203. See P&P C-45A.

Governmental Entities

Governmental entities are not exempt from the imposition of civil penalties.

D. OFFICE PROCEDURES

When an inspection results in violations for which
civil penalties are proposed, the completed Cal/OSHA
Form 10 shall be submitted to the District Manager for
review and approval. If the citation is office-issued,
the Cal/OSHA Form 10 shall be submitted to the District
Manager together with the Cal/OSHA Form 1B. If the
citation has been field-issued, the Cal/OSHA Form 10
shall be submitted together with the Cal/OSHA Form 1B
and Cal/OSHA Form 2 (Citation and Notification of
Penalty).

In the case of a follow-up inspection, the original
Cal/OSHA Form 10 shall be submitted to the District
Manager together with the original case file for review
and approval.

For office-issued citations and failure-to-abate
citations, information from the Cal/OSHA Form 10 shall
be transferred to the Cal/OSHA Form 1B for citation
processing.

After the District Manager has reviewed and approved
the Cal/OSHA Form 10, the Form is given to the Office
Support Staff for filing in the case file.

E. FORMS DISTRIBUTION

Office Support Staff shall file the original Cal/OSHA Form
10 in the employer's case file.

F. FORMS COMPLETION

Item Instruction

1

Enter the employer's name and mailing address.

2A

Initial Inspection

Enter the compliance personnel ID number, Report Number,
Fiscal Year of the initial inspection from the Cal/OSHA Form
1, the Region and District.

2B

Follow-up Inspection

If the penalty results from a follow-up inspection, enter
the identifying information. Transfer the subsequent Good
Faith, Size and History factors from the Cal/OSHA Form 1A to
Figure 3 in Item 22.

3,4

Enter the citation numbers and item numbers sequentially
from the Cal/OSHA Form 1B or 1B (IH)

5,6,7

For each citation number and item number, enter the
respective information from Items 9, 11 and 6 of the
Cal/OSHA Form 1B or 1B (IH).

8

If the citation item involves a carcinogen standard, enter a
C.

9

Enter the penalty based upon the severity of the violation.
See Item 12 of Cal/OSHA Form 1B.

10

Multiply the base penalty by the appropriate extent
modification factor and enter the resulting value. See Item
13 of the Cal/OSHA Form 1B.

11

Multiply the base penalty by the appropriate likelihood
modification factor and enter the resulting value. See Item
14 of the Cal/OSHA Form 1B.

12

Enter the sum of Items 9 through 11.

13

If the violation is repeat, multiply the gravity-based
penalty in Item 12 by the appropriate factor and enter the
resulting amount.

14

If a regulatory, general or serious violation is determined to
be willful, multiply the value in item 12 by 5 and enter the resulting amount.

15

Enter the total percentage penalty adjustment factor from
Figure 2 in Item 15.

NOTE: If the employer does not have an operative Injury and Illness Prevention Program, as set forth in 8 CCR Section 3203, the penalty for any serious violation shall not be reduced for any reason other than the Size of the employer being charged. If the employer is being cited for a repeat violation, the penalty for any repeat violation shall not be reduced for any reason other than the Size of the employer being charged.

Multiply the highest dollar amount in either Item 12, 13, or
14 by the adjustment factor, round down to the next whole
dollar, and enter the resulting amount.

16

Subtract the dollar amount in Item 15 from the amount in
Item 12, 13 or 14, round down to the next whole dollar, and
enter the resulting amount.

17

Multiply the dollar amount in Item 16 by 50% (or divide by
1/2) for all violations subject to abatement credit, round
down to the next whole dollar, and enter the resulting
amount.

18

Subtract the abatement credit in Item 17 from the amount in
Item 16, round down to the next lowest $5 and enter the
resulting amount. Continue entering all violations in the
rows provided until all cited violations have been entered
and calculated. When all violations have been entered and
calculated, total the civil penalties for each violation
found in Item 18 and enter the total in Item 18A.
Compliance personnel completing the Cal/OSHA Form 10 shall
sign his or her name and date of signature in space 27.

Items 19 through 26 shall be completed when the violations
previously cited are found during a follow-up inspection not to
have been abated by the abatement dates indicated on the Cal/OSHA
Form 2 (Citation and Notification of Penalty). A photocopy of
the original Cal/OSHA 10 shall be used to calculate the failure-
to-abate penalty.

19

Enter the abatement dates of all non-abated items from the
Cal/OSHA Form 2. Dates are only entered in instances of
failure-to-abate penalties.

20

Enter the date of the follow-up inspection.

21

When the violation has not been abated, enter the number of
calendar days between the abatement day and the follow-up
inspection day. Do not include in the count the abatement
date and the follow-up inspection date.

22

Enter the total percentage penalty adjustment factor from
Figure 3 in Item 22. Multiply the amount in Item 12 by the
adjustment factor and enter the resulting amount. See P&P
C-10, Section B.7.b.(4)(a) and (b).

23

Subtract the penalty adjustment in Item 22 from the amount in Item
12 and enter the resulting amount, which is called the daily penalty. The penalty
shall not exceed $15,000 per day [8 CCR Sec. 336(f)].

24

If the employer corrected some instances, the penalty will
be reduced accordingly. Multiply the amount in Item 23 by
the ratio of number of instances not abated to total
instances, round down to the next whole dollar, and enter
the resulting amount.

EXAMPLE: If out of 12 total instances, 8 have not been
abated, the ratio is 8/12. If the amount in Item 23 is
$2,000, then multiply $2,000 x 8/12, which equals
$1333.

Multiply the dollar amount in either Item 23 or Item 24
(multiply Item 24 only if one or more instances have been
abated) by the number of days in Item 21, to this dollar
amount add Item 25, round down to the next lower $5 value,
and enter the resulting amount in Item 26.

26A

Enter the sum of the dollar amounts in Item 26. Continue
entering all failure-to-abate violations in the rows
provided until all cited failure-to-abate violations have
been entered and calculated. When all failure-to-abate
violations have been entered and calculated, total the
failure-to-abate civil penalties for each violation found in
Item 26 and enter the total in Item 26A.

27

The compliance personnel completing the Cal/OSHA Form 10
shall sign his or her name and date of signature in space 27
for inspections.

28

The compliance personnel completing the Cal/OSHA Form 10
shall sign his or her name and date of signature in space 28
for follow-up inspections.

Figure 1

Use the abbreviation listed when entering violation
classification.

Figure 2

Transfer the percentage of Good Faith, Size and History
factors from the Cal/OSHA Form 1A to Figure 2.

Figure 3

Transfer the percentage of Good Faith, Size and History
factors from the Cal/OSHA Form 1A to Figure 3.